2. Economists like Ed Glaeser (and Ryan Avent, although I haven’t read his new treatise; reviewed by Rob Pitingolo in GGW and Lydia in CityPaper) often make the mistake of overly simplifying how housing markets work. Instead, numerous other important factors complicate matters, including:
– as Rob points out, housing is a bundle of goods whose utilities vary for different audiences
– housing construction can induce demand, particularly by adding amenities to a neighborhood
– housing construction can also remove amenities from a neighborhood, like a low-rise scale, thus changing other intangibles included in that bundle of goods
– construction costs don’t increase linearly; rather, costs jump at certain inflection points, like between low- and mid-rise
– housing and real estate in general are imperfect markets, since land is not a replicable commodity
– the substantial lag time for housing construction, even in less regulated markets, almost guarantees that supply will miss demand peaks

Pro-active planning remains the best and most time-honored way of pre-empting NIMBYs. Get the neighborhood to buy-in to neighborhood change early on, and then they won’t be surprised and upset when it happens.

3. Very interesting to see (via Dan Mihalopoulos/CNC) that Inspector General Joseph Ferguson has put a lot of sacred cows on the table for increasing revenue in Chicago — particularly several implicit subsidies to drivers. A downtown congestion charge, tolls on Lake Shore Drive, a commuter income tax, privatized parking enforcement, higher water/sewer fees, and higher garbage collection fees all would substantially impact suburbanites, single-family homeowners, and drivers.